Reprinted  from  The  Annals  of  the  American  Academy  of  Political  and  Social 
Science,  Philadelphia,  November,  1915. 

Publication  No.  945. 


THE  BUDGETARY  PROVISIONS  OF  THE  NEW  YORK 
CONSTITUTI^ 

By  Charles  a/1Beard, 

Professor  of  Political  Science,  Columbia  University. 

It  may  be  truly  said  that  the  New  York  Constitutional  Con¬ 
vention  of  1915  marks  a  new  epoch  in  the  history  of  budgetary 
procedure  in  the  United  States.  The  general  subject  of  financial 
administration  has,  of  course,  received  serious  consideration  at 
various  times  and  places,  and  public  attention  has  occasionally  been 
aroused  by  particular  fiscal  scandals  such  as  those  which  were 
attacked  by  Governor  Tilden  of  this  state  more  than  a  generation 
ago.  Sometimes,  also,  a  constitutional  convention  has  bestowed  a 
passing  glance  upon  the  fiscal  problem  while  wrestling  with  the 
mighty  matter  of  the  separation  of  powers;  but  never  before  has 
the  whole  question  of  financial  administration  in  all  its  ramifications 
and  in  all  of  its  implications  received  a  thoroughgoing  and  syste¬ 
matic  consideration  at  the  hands  of  a  constituent  assembly.  Never 
before  has  there  been  a  responsible  citizens^  agency,  like  the  Bureau 
of  Municipal  Research  in  the  city  of  New  York,  equipped  with  a 
staff  of  men  trained  in  finance,  accounting  and  administration  and 
prepared  to  make  for  a  convention  long  and  searching  investigations 
into  all  of  the  intricacies  involved  in  budget  procedure.  In  other 
words,  the  conditions  surrounding  the  formation  of  the  New  York 
^  constitution  of  1915  were  such  as  to  guarantee  a  more  thoughtful 
review  of  finances  than  ever  before  in  the  history  of  state  constitu¬ 
tion-making  in  the  United  States. 

^  Those  who  are  familiar  with  European  budget  practice,  who 
.’lave*  Tvad  their  Lowell,  Stourm  and  Duguit,  know  very  well  that 
the  biidget  is  no  simple  matter  of  bookkeeping — that  as  Gladstone 
g'aid — ‘‘budgets  are  not  merely  affairs  of  arithmetic,  but  in  a 
thousand  ways  go  to  the  root  of  prosperity  of  individuals,  the 
relation  of  classes,  and  the  strength  of  kingdoms.’’  The  budget 
>  is  the  very  heart  of  the  governing  process;  it  involves  fundamental 
problems  in  administrative  organization,  in  public  policy,  in  legis- 

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The  Annals  of  the  American  Academy 


lative  responsibility,  and  in  political  leadership.  Sound  budgetary 
procedure  cannot  be  injected  into  the  hopelessly  disorganized 
governments  of  American  commonwealths.  It  requires  a  thorough¬ 
going  reconstruction,  even  of  the  very  elemental  parts  of  the  govern¬ 
ment  framework. 

It  was  in  recognition  of  this  fact  that  the  Bureau  of  Municipal 
Research  in  preparing  to  make  recommendations  to  the  New  York 
Constitutional  Convention  not  only  took  into  consideration  the 
problems  of  appropriations,  debt,  sinking  fund,  deficits,  and  taxa¬ 
tion,  but  also  began  at  the  same  time  the  most  painstaking  and 
minute  study  of  administrative  structure  that  has  ever  been  made 
in  this  country.  This  administrative  study  was  undertaken  in 
connection  with  the  state  Department  of  Efficiency  and  Economy 
and  resulted  in  the  publication  of  a  truly  monumental  description 
of  the  organization  and  functions  of  the  New  York  government. 
This  volume,  which  was  prepared  for  the  state  Constitutional 
Convention  Commission,  was  issued  early  in  1915. ^  After  its 
publication,  the  Bureau  of  Municipal  Research  prepared  a  critical 
‘‘appraisal’’  of  the  system  from  the  point  of  view  of  efficiency, 
economy,  responsiveness  and  responsibility  in  government.  In  this 
second  work  the  Bureau  pointed  out  the  necessity  of  establishing  any 
sound  budgetary  law  and  practice  upon  a  legislative  and  executive 
organization  which  would  secure  official  responsibility  for  public 
policies  and  public  work.^ 

Having  thus  laid  both  the  fact  and  the  philosophic  basis  for  a 
scientific  budget  system,  the  Bureau  prepared  a  series  of  bills  em¬ 
bracing  the  following  features: 

1.  The  appointment  of  the  heads  of  the  great  administrative  departments 
by  the  governor,  although  several  officers,  owing  to  political  exigencies,  are  left 
elective; 

2.  The  establishment  of  a  governor’s  cabinet,  composed  of  the  executive 
heads  of  the  administration  under  the  governor  as  chief  executive; 

3.  The  organization  of  a  governor’s  staff  to  serve  as  a  research  and  investi¬ 
gating  agency  for  the  chief  executive; 

^  The  volume  is  entitled  Government  of  the  State  of  New  York;  A  Survey  of  Its 
Organization  and  Functions.  A  limited  number  of  copies  may  be  secured  from  the 
Bureau  of  Municipal  Research  for  $1.00. 

2  Published  under  the  title  of  “The  Constitution  and  Government  of  the 
State  of  New  York.”  May,  1915,  issue  of  Municipal  Research.  Can  be  procured 
from  the  Bureau  for  $1.00. 


Budgetary  Provisiotsts  of  New  York  Constitution  3 


4.  The  initiation  of  the  budget  by  the  governor; 

5.  The  right  of  the  governor  and  his  representatives  to  appear  before  the 
legislature  to  submit,  explain  and  defend  administrative  measures; 

6.  In  case  of  the  refusal  of  the  legislature  to  pass  such  measures,  the  right  of 
the  governor  to  dissolve  the  legislature  and  submit  the  issue  to  the  voters; 

7.  A  constitutional  procedure  for  locating  responsibility  and  for  giving 
publicity  to  the  discussion  of  all  issues  which  arise,  whether  they  pertain  to  admin¬ 
istrative  measures  or  the  bills  of  members.  In  other  words,  to  do  away  with 
invisible  government  by  estabUshing  visible  government. 

These  measures,  the  representatives  of  the  Bureau  supported 
at  the  hearings  before  the  Constitutional  Convention  committees 
and  the  principles  thus  laid  down,  were  with  some  exceptions, 
elaborated  and  defended  by  a  number  of  gentlemen  eminently 
qualified  to  speak  upon  financial  administration.^ 

It  was  not  expected  that  the  Convention  would  accept  this 
somewhat  radical  program  in  its  entirety,  but  Article  V  of  the  new 
state  constitution,  while  omitting  two  or  three  fundamental  matters, 
includes  such  a  large  part  of  it  that  it  may  be  justly  said  to  constitute 
the  beginning  of  a  new  era  in  state  fiscal  administration,  whether 
adopted  or  not.  This  article  falls  into  five  main  divisions. 

In  the  first  place,  it  vests  the  initiation  of  certain  parts  of  the 
budget  in  the  governor.  It  expressly  excludes  from  his  control, 
however,  the  legislative  and  judicial  appropriations.  This  much 
is  clearly  set  forth  but  there  is  considerable  difference  of  opinion  as 
to  the  exact  limits  of  the  remainder  of  the  state  appropriations 
which  are  to  be  initiated  by  the  governor.  The  opening  paragraph 
of  the  article  in  question  provides  that  the  head  of  each  department 
of  the  state  government  shall  submit  to  the  governor 

itemized  estimates  of  appropriations  to  meet  the  financial  needs  of  such  depart¬ 
ment,  including  a  statement  in  detail  of  all  moneys  for  which  any  general  or  special 
appropriation  is  desired  at  the  ensuing  session  of  the  legislature,  classified  according 
to  relative  importance  and  in  such  form  and  with  such  explanation  as  the  governor 
may  require. 

Whether  this  provision  would  cover  all  of  the  appropriations 
coming  under  the  general  jurisdiction  of  the  several  departments, 
including  special  and  local  appropriations  as  well  as  those  for  purely 
departmental  purposes,  is  now  a  matter  of  hot  debate.  The  friends 

•  The  records  of  these  hearings  have  been  published  by  the  Bureau  of  Munic¬ 
ipal  Research  in  two  volumes — “Budget  Systems  ”  and  “State  Administration,” 
Nos.  62  and  63  of  Municipal  Research,  to  be  secured  from  the  Bureau  at  $1.00  each. 


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The  Annals  op  the  American  Academy 


of  the  proposition  contend  that  under  it  the  governor  is  responsible 
for  covering  in  his  budget  substantially  every  item  which  does  not 
specifically  fall  within  the  province  of  the  legislative  or  judicial 
appropriation. 

In  the  second  place,  Article  V  provides  that  the  governor  shall 
take  the  estimates  (which  are  to  be  prepared  for  him  by  the  depart¬ 
ments  on  or  before  the  fifteenth  day  of  November  in  each  year), 
hold  public  hearings  thereon,  revise  them  according  to  his  judgment, 
and  then  submit  to  the  legislature,  on  or  before  the  first  day  of 
February,  a  budget  containing  a  complete  plan  of  proposed  expendi¬ 
tures  and  estimated  revenues.  In  addition,  it  must  contain  all 

estimates  so  revised  or  certified  and  shall  be  accompanied  by  a  bill  or  bills  for  all 
proposed  appropriations  and  reappropriations,  clearly  itemized;  it  shall  show  the 
estimated  revenues  for  the  ensuing  fiscal  year  and  the  estimated  surplus  or 
deficit  of  revenues  at  the  end  of  the  current  fiscal  year,  together  with  the  measures 
of  taxation,  if  any,  which  the  governor  may  propose  for  the  increase  of  the  revenues. 
It  shall  be  accompanied  by  a  statement  of  the  current  assets,  liabilities,  reserves 
and  surplus  or  deficit  of  the  state;  statements  of  the  debts  and  funds  of  the  state; 
an  estimate  of  its  financial  condition  as  of  the  beginning  and  end  of  the  ensuing 
fiscal  year;  and  a  statement  of  revenues  and  expenditures  for  the  two  fiscal  years 
next  preceding  said  year,  in  form  suitable  for  comparison.  The  governor  may, 
before  final  action  by  the  legislature  thereon,  amend  or  supplement  the  budget. 

In  the  third  place  the  measure  provides  for  a  system  of  inter¬ 
pellation  to  be  elaborated  by  legislative  action.  The  constitution 
stipulates  that  the  governor  and  the  heads  of  all  departments  shall 
have  the  right,  and  it  shall  be  their  duty,  when  requested  by  either 
house  of  the  legislature,  to  appear  and  be  heard  in  the  matter  of  the 
budget  and  to  answer  all  inquiries  relevant  thereto. 

In  the  fourth  place  the  legislature  may  not  alter  an  appropria¬ 
tion  bill  submitted  by  the  governor  except  to  strike  out  or  reduce 
items  therein.  When  the  bill  has  been  passed  by  both  houses,  it 
becomes  a  law  without  further  action  by  the  governor,  except  that 
appropriations  for  the  legislature  and  judiciary  (which  are  included 
by  the  governor  in  his  budget  as  a  matter  of  form)  are  subject  to  his 
veto  in  the  regular  course. 

In  the  fifth  place,  the  power  of  initiating  “further  appropria¬ 
tions”  is  vested  in  the  legislature,  but  it  is  provided  that  such 
appropriations  shall  not  be  considered  until  the  governor’s  entire 
budget  is  disposed  of.  Moreover,  it  is  stipulated  that  further 
appropriations  shall  be  made  by  separate  bills  each  for  a  single  work 


Budgetary  Provisions  of  New  York  Constitution  5 


or  object,  and  that  such  bills  shall  be  specifically  subject  to  the 
governor’s  veto. 

In  the  sixth  place,  as  a  means  of  checking  somewhat  the  time- 
honored  practice  of  log  rolling,  section  21  of  Article  III  dealing  with 
the  legislative  power  provides  that: 

No  public  moneys  or  property  shall  be  appropriated  for  the  construction  or 
improvement  of  any  building,  bridge,  highway,  dike,  canal,  feeder,  waterway  or 
other  work  until  plans  and  estimates  of  the  cost  of  such  work  shall  have  been  filed 
with  the  secretary  of  state  by  the  superintendent  of  public  works,  together  with  a 
certificate  by  him  as  to  whether  or  not  in  his  judgment  the  general  interests  of  the 
state  then  require  that  such  improvement  be  made  at  state  expense.  This  section 
'shall  not  apply  to  the  contributions  of  the  state  to  the  cost  of  eliminating  grade 
crossings  or  to  items  in  the  budget  for  the  construction  of  highways  from  the 
proceeds  of  bonds  authorized  under  section  4  of  Article  IX  of  this  constitution,  or 
section  4  of  former  Article  VII  thereof  as  in  force  on  the  first  day  of  January,  1910. 

It  is  by  no  means  clear  what  this  provision  implies  and  how  far 
it  will  act  as  a  means  of  control  over  the  “pork  barrel.” 

Naturally  these  provisions  of  the  new  constitution  are  hotly 
attacked,  particularly  by  those  who  believe  that  every  state  officer 
(including  probably  the  janitor  of  the  state  capitol)  should  be 
elected  by  popular  vote.  It  is  contended  on  their  behalf  that  this 
measure  makes  the  governor  a  czar.  Other  opponents  of  the 
constitution,  however,  take  the  ground  that  Article  V  will  be  futile 
because  it  gives  to  the  legislature  full  freedom  of  initiation  after  the 
governor’s  budget  has  been  acted  upon.  The  representatives  of 
this  group  hold  that  the  governor  can  thus  escape  responsibility 
and  that  pork  barrel  politics  will  flourish  as  of  old.  Most  of  the 
friends  of  the  provision  in  question  freely  admit  that  it  does  not  go 
far  enough  and  that  it  does  not  assure  absolute  responsibility,  but 
they  do  hold  that  taken  in  connection  with  a  reorganized  state 
administration,  the  new  article  makes  possible  the  establishment  of 
a  degree  of  responsible  government  hitherto  unknown  in  American 
politics. 


